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How much did WorldCom filed for bankruptcy?
WorldCom, crushed by its $41 billion debt load, made its filing in the Southern District of New York. With $107 billion in assets, WorldCom’s bankruptcy is the largest in United States history, dwarfing that of Enron Corp….SPECIAL:
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How much debt did WorldCom have?
WorldCom, built through rapid acquisitions, accumulated $41 billion in debts.
How much value was lost as a result of the WorldCom collapse?
In reality, WorldCom lost “$48.9 billion (including a $47 billion write-down of impaired assets).” Consequently, instead of a $10 billion profit for the years 2000 and 2001, WorldCom had a combined loss for the years 2000 through 2002 (the year it declared bankruptcy) of $73.7 billion.
How did WorldCom violate the matching principle?
By improperly transferring certain costs to its capital accounts, WorldCom falsely portrayed itself as a profitable business during 2001 and the first quarter of 2002. WorldCom’s transfer of its costs to its capital accounts violated the established standards of generally accepted accounting principles (“GAAP”).
What happened to WorldCom assets?
The fraud was uncovered in June 2002 when the company’s internal audit unit, led by vice president Cynthia Cooper, discovered over $3.8 billion of fraudulent balance sheet entries. Eventually, WorldCom was forced to admit that it had overstated its assets by over $11 billion.
What laws did WorldCom break?
Second, WorldCom improperly reduced its operating expenses by recharacterizing certain expenses as capital assets. By engaging in such improper conduct, WorldCom violated the anti-fraud, reporting, record-keeping, and internal controls provisions of the federal securities laws.
When should I file bankruptcy?
You’ve been out of work for an extended period and have no unemployment income or savings.
When to declare bankruptcy?
The word “bankruptcy” is legal term used when a person or organization declares that they are unable to pay their creditors, or that their ability to do so is impaired. In most cases, the person or organization will declare bankruptcy voluntarily.
When to go bankrupt?
The right time to consider bankruptcy is when you suspect that you can’t really repay your debts in full in 3-5 years, on your own. Or, when the stress of being in debt interferes with your health or your relationships.